Determining the most profitable process mean for a production process where rejected item is sold at a reduced price or reworked

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Journal of Korean Society for Quality Management > Volume 26(3); 1998 > Article

Journal of Korean Society for Quality Management 1998;26(3): 46-.

불합격 제품을 재가공하거나 할인판매하는 생산공정에 대한 공정평균의 경제적 결정

이민구¹, 최인수², 하태용³

¹서원대학교 경영학과
²한국과학기술원 산업경영연구소
³전주공업전문대학 산업경영과

Determining the most profitable process mean for a production process where rejected item is sold at a reduced price or reworked

ABSTRACT

The problem of selecting optimal target values for the mean of the quality characteristic of interest for a production process in which an item is sold in one of two market with different profit / cost structures or reworked. Two profit models are constructed which involve four profit / cost components: profit, production, inspection, and rework costs. Assumed that the quality characteristic of interest is normally distributed, methods of finding the most profitable process mean are presented and a numerical example is given.